Journal Entry For Computer / Laptop Sale

Basically, there are two types of Journal Entries related to the sale of Computer (C) or Laptop (L).

1. When Computer or Laptop Sale that was previously used in the office. In that case, we record the entry as in the case of Sale of Fixed Assets / Non Current Assets.

In such a case, two types of business transactions are considered as shown below:

(i) When the computer / laptop sold for cash / check or cheque, then either there is a gain, loss or no gain no loss situation.

Here we consider a situation of gain, then the entry would be as shown below:

          
Accumulated Depreciation - Computer / Laptop a/c  XXX

Cash a/c / Bank a/c  XXX


                                                      Computer a/c / Laptop a/c  XXX

                                                     Gains on Disposal / Sale of Computer / Laptop a/c  XXX

                                                     (C / L Sold For Cash / Bank)

(ii) When the computer sold on account or credit, then there is a gain, loss or no gain no loss situation

Here we consider a situation of Gain

     Accumulated Depreciation - Computer / Laptop a/c  XXX

              Accounts Receivable a/c  XXX


                                                   Computer a/c/ / Laptop a/c  XXX

                                                   Gain On Disposal / Sale Of Computer / Laptop a/c  XXX

                                                        (C / L Sold On Account)

2. When the computer / laptop which previously purchased for resale purposes, then it would be treated as goods sold i.e., a Sales Account is created for such transaction.

In that case, there are two types of transactions which are mentioned below:-

(i) When computer or laptop sold for cash / check or cheque

                                                     Cash a/c / Bank a/c  XXX

                                                                                     Sales a/c  XXX

                                                  (Goods Sold For Cash / Bank)

(ii) When computer / laptop sold on account or credit, then:ads1

                             Accounts Receivable / Debtor a/c  XXX

                                                                                    Sales a/c  XXX

                                                   (Goods Sold On Account)

Question For Your Understanding

A company / corporation bought (purchased) a computer for $1,500. After three years, the computer was sold for $300 in the market. Assuming a 5-year estimated service life (useful life) and straight line depreciation, which account(s) would be used to record the disposal of the asset? Choose All That Apply.

A. Fixed Assets B. Sales Income  C. Depreciation Expense D. Accumulated Depreciation

The correct answer is Fixed Assets and Accumulated Depreciation as these accounts are used for the disposal of fixed asset (computer).